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Product and Brand Management
What is a product?
• A product is any offering by a company to a
market that serves to satisfy customer needs
and wants.
• It can be an object, service, idea,etc.
New Product Development
• Most new product development is an
improvement on existing products
• Less than 10% of new products are totally
new concepts.
Success rate of new products
• The success rate of new products is very
low – less than 2%. ‘You have to kiss a lot
of frogs to find a prince.”
• Product obsolescence is rapid with
improvements in technology
• Shorter PLCs
Product Development Stages
Idea generation
Idea screening
Concept development and testing
Concept testing
Conjoint analysis – to find out the best
valued attributes by consumers
Business analysis
• The most customer appealing offer is not
always the most profitable to make
• Estimate on costs, sales volumes,pricing
and profit levels are made to find out the
optimal price – volume mix.
• Breakeven and paybacks
• Discounted cash flow projections
Market testing
Test markets
Test periods
What information to gather?
What action to take?
When? (Timing)
Where? (Which geographical markets)
To whom? (Target markets)
How? (Introductory Marketing strategy)
Product Levels
Customer value hierarchy
Core benefit
Basic product
Expected product
Augmented product
Potential product
Customer Delight
• When you exceed customer expectations
Product Hierarchy
Product family
Product class
Product Line
Product type
Product classification
• Durable
• Non – durable
• Services
Consumer goods classification
Convenience goods
Shopping goods
Specialty goods
Unsought goods
Industrial goods classification
• Materials and Parts
- raw materials
- manufactured materials and parts
• Capital items
• Supplies and business services
Product Mix
• The assortment of products that a company offers
to a market
Width – how many different product lines?
Length – the number of items in the product line
Depth – The no. of variants offered in a product
Consistency – how closely the product lines are
related in usage
Product Line decisions
• Product rationalization
• Market rationalization
• Product line length
too long – when profits increase by dropping a
product in the line
too short – when profits increase by adding
products to the product line
• Line pruning – capacity restrictions to decide
• Includes the activities of designing and
producing the container for a product
• Packaging is done at three levels
- primary
- secondary
- shipping
Packaging as a marketing tool
Self service
Consumer affluence
Company and brand image
Designing packaging
Packaging concepts
Technical specifications
Engineering tests
Visual tests
Dealer tests
Consumer tests
Packaging innovations
Environmental considerations
Grade classification
Description of product
Manufacturer identity
Date of mfg., batch no.
Instructions for use
Labels as a marketing tool
• Labels need to change with time or
packaging changes to give it a
contemporary and fresh look